If you requested $6,000 but got less because of the loss then you don't have a 2021 excess contribution anymore. Sorry for the miscommunication in the other post, it sounded as if you had requested less but the good news is we figured it out and you don't have an excess contribution for 2021.
Since you withdrew the full Roth IRa contribution for 2021 you can either delete the Roth IRA contribution on your 2021 return or you can follow these steps:
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “Roth IRA”
- Keep the $6,000 Roth IRA contribution for 2022
- On the "Do you have any Excess Roth Contributions" answer "Yes"
- On the "Enter Excess Contributions" screen enter the total excess contribution from 2020.
- Continue until the penalty screen and enter the excess contribution amount of $6,000 as withdrawn by the due date.
No 2a with $0 is correct. Unfortunately, you cannot claim the loss anywhere.
After you followed the steps above you should only have the 6% penalty on the 2020 excess contribution (which you removed in 2022) on your 2021 tax return.
@ChiMing
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